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Mr. Medlin’s Tucker bank account No. 1089234 dated April 8, 1987,
shows the deposit of a check for $90,000 from “Orl. Land &
Investment”, “LESS CASHIERS CHECK in the amount of $22,260.00”;
this resulted in a net deposit of $67,740 to account No. 1089234.
On April 6, 1987, petitioner executed a promissory note for
the benefit of Don Henry and Sylvia Cohn, which provided:
90,000.00 4/6/1987
Ninty (90) days after date, the undersigned, for value
received jointly and severally promise to pay to the
order of Don Henry and/[illegible entry] Sylvia Cohn at
Orlando Fla. Ninty Thousand ($90,000) + Twenty
Thousand ($20,000) dollars with interest from date at
the rate of ----% per annum until fully paid. Interest
payable ----. This note shall bear interest from
maturity at the rate of ----% per annum until fully
paid.
The promissory note is signed by petitioner. Don Henry was the
president of Orlando Land & Investment Co.
Respondent determined that the deposit of $67,740 was
taxable as income to petitioner for 1987.
OPINION
Petitioner contends that the deposit of $67,740 on April 9,
1987, represents a portion of the loan proceeds received from Don
Henry of the Orlando Land & Investment Co.
Respondent agrees that “The source for the deposit was a
check for $90,000 from Orlando Land & Investment”. Accordingly,
the April 9, 1987, deposit is not unidentified as respondent
originally determined. Nevertheless, respondent argues that this
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